Carr's C-Band Comments Point to CBA Losing Ground, NSR Analyst Says
FCC Commissioner Brendan Carr's focus on clearing more than 200 MHz of the 3.7-4.2 GHz band "is a clear signal" opposition to the C-Band Alliance band-clearing plan "is gaining momentum," New Street Research's Blair Levin wrote investors Thursday. Carr at…
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WISPAmerica in Cincinnati said the FCC "can do better" than 200 MHz and his focus is on those approaches, hoping for a 2019 order. Levin said Carr's comments will boost rival proposals, such as those by T-Mobile or from cable operators, and pressure the CBA to rework its plan. The analyst said Carr's comments point to "the goal lines for completion" of an order being later than Q2 or early Q3. CBA emailed us that its 200 MHz clearing plan "is centered by what can be delivered in 18 to 36 months from an FCC order, which we believe to be the fastest by a matter of years as compared to any other alternative. We have indicated that as compression technologies improve, we may be able to clear more, but over time [and that] the FCC wants to protect existing customers in this proceeding. ... Given that our satellite signals blanket the U.S. ubiquitously, and cannot be ‘turned off’ in cities, it would be difficult, if not impossible, to deploy a solution that results in cities having more cleared spectrum than suburban and rural areas." Commissioner Mike O'Rielly Wednesday said he would like 400 to 500 MHz to be freed up, but he considers 200 to 300 MHz more realistic (see 1903200009). American Enterprise Institute Visiting Fellow Daniel Lyons blogged Thursday that the advantage of the market-based CBA approach is speed, likely clearing spectrum faster than an incentive auction. He said it's likely a more efficient approach, with buyers and sellers negotiating directly. He said the argument the CBA approach would be a windfall for satellite operators "is somewhat overblown" since they'll bear repacking costs including new satellites, but financial gains for those operators provide incentive to make more spectrum available, which ultimately benefits consumers. CBA told us it was unaware Lyons was writing the piece and didn't compensate him.